Lucara Diamond Corp. provided an update on the ongoing Feasibility Study for a potential underground operation at the Company's 100% owned and operated Karowe Diamond Mine located in the Republic of Botswana. The Company announced the results of a comprehensive mineral resource update with the successful reclassification from Inferred to Indicated Resources for the AK06 kimberlite between 600 and 400 metres above sea level (masl). The new base of the Indicated Mineral Resource is at 400 masl (600 metres below surface). Modifications to the internal geological model for the South Lobe of the AK06 kimberlite resulted in the recognition of the EM/PK(S) unit as the volumetrically dominant unit at depth within the South Lobe. With 75% of the South Lobe Indicated recoverable carats between 600 and 400 masl being attributed to the EM/PK(S) unit. Historical recoveries from the EM/PK(S) have included several large and high value diamonds such as the 1,109 carat Lesedi La Rona and the 813 carat Constellation. Deep drilling which started in 2018 and will continue into early 2019 for geotechnical purposes has intersected South Lobe kimberlite below the current base of the Inferred Resource (256masl) at elevations circa 66masl. During 2018, 33 core holes totaling 20,283 metres were drilled representing approximately 83% of the originally planned drilling. Drilling will continue into late first quarter 2019 and will focus on deep granite/kimberlite intersections with the final receipt of all data by mid to late second quarter 2019. Data collection is underway consisting of detailed geotechnical and geological logging, density measurements, point load testing and other geotechnical rock strength testing. No major risks have been identified during drilling or with data collected from geotechnical rock testing. The main objective of the hydrogeological program was to quantify the mine dewatering and depressurization requirements to continue the successful de-watering of the open pit and to identify the immediate and ongoing de-watering requirements for the potential underground mining operations. A total of four deep bore holes were drilled to assess the deep hydrogeological conditions at Karowe, three of which were specifically designed to target and test the potential existence of a deep basal aquifer. Drilling encountered limited water strikes, provided no evidence for such an aquifer, and has positively addressed one of the key risks identified during the PEA study.